LUKOIL filling station network

LUKOIL sells the bulk of own petroleum products in the retail market via its well diversified distribution network of 5,309 filling stations and 132 oil depots in 18 countries.

In 2016, the Company's total retail sales amounted to 13.9 million tones of petroleum products, of which 9.8 million tones were sold in Russia and 4.1 million tones abroad.

The optimized distribution network helped increase average daily sales per filling station in Russia to 12.7 tonnes per day.

LICARD SALES

To boost sales via filling stations, the Company runs a customer loyalty program with its fuel cards and retail loyalty cards provided via the LICARD corporate payment system. In 2016, the total sales of petroleum products via LICARD exceeded 8.1 million tonnes, up 25% year-on-year.

ECTO FUELS

LUKOIL actively promotes sales of branded fuels with improved efficiency and environmental performance under the ECTO brand. In 2016, sales of ECTO fuels in Russia were up 34% at 6.4 million tonnes, and sales via the international retail network, excluding divested distribution networks, reached 1.5 million tonnes, up 10.3% year-on-year.

In 2017 we were the first Russian company to commence sales of new premium quality gasoline, ECTO 100. The new improved fuel of the ECTO range, with better performance properties, is intended to fully replace the ECTO Sport 98 gasoline, its predecessor at the company's filling stations. ECTO 100 is the accomplishment of an ambitious, years-long modernization of LUKOIL refineries. The refinery in Nizhny Novgorod region had developed new formulations and optimized the process of blending of gasoline components. ECTO 100 high quality and compliance with international standards have been tested by the Swiss company Intertek.